Government body calls for compulsory insurance of schools, boda bodas

The Insurance Regulatory Authority (IRA) has proposed to government to introduce a law to make it compulsory for all schools and boda boda riders to acquire insurance.

The director of Planning, Research and Marketing Development at IRA, Mr Protazia Sande, said fires have become common, especially in private schools, yet they are not insured, posing great risk and loss to parents and owners of schools.

“We are saying, let government come up with some policy framework where we can have compulsory insurance for schools that cover basic things like fire and public accidents, especially in private schools where these are common. Of late, our children are dying and properties being destroyed and yet these risks can be managed,” Mr Sande said during a closed-door meeting between the State Minister of Economic Monitoring, Ms Molly Kamukama, and managers of IRA on Friday at the office of the President in Kampala.

Mr Sande also said the current third-party insurance law does not cover the motorcycle and the rider.
He said only boda boda riders in registered organisations such as Uber and Safe Boda are insured.

“When a boda boda gets an accident, the Third Party law talks about a compensation of Shs1m, which is very little. The law does not cover the person and his motorcycle. So we are suggesting that the 2015 proposed amendment of that Third Party law be revised so that people, motorcycles and their taxis are covered as well to save their businesses even when they die,” he added.

Minister Kamukama said her office can only handle the policy part of it. She said she would await the report and proposal from IRA on how to go about it.

“There are very many emerging issues from the boda boda and taxis industry. We want to make sure that we insure one as a person and his property so that when something happens to them, their business will thrive. As government, we are ready to fast track the law so that all these proposals are incorporated,” Ms Kamukama said.

The two parties also agreed to make it a requirement to have Ugandans own shares in insurance companies.
Mr Sande said many insurance companies in the country are owned by foreigners and Ugandans are not benefiting from them. He called for a law to have those companies sell some shares to Ugandans.

The meeting also resolved to enhance government’s support to agriculture since it employs 80 per cent of the population.
The meeting also resolved to compel insurance companies to establish branches upcountry to support SACCOs and small businesses.
Mr Patrick Kaboyo, the executive secretary of private schools association, said the proposed policy of mandatory insurance should have been put in place long time ago.

“This is long overdue because the government could have introduced it long time ago. We support it,” Mr Kaboyo said.

Accidents

Records from the Traffic Police Department indicate that more than 7,000 people were killed in boda boda accidents within a two-year period from 2015 to 2017 in Uganda. And more than 60 per cent of these victims who died on the roads were in Kampala, Mukono and Wakiso districts which are the greater Kampala area.

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